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Long Answer Questions · Q12

Q.Explain the causes for the growth of Public Expenditure in India.

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Public expenditure in India, as in most countries, has grown substantially over time for several reasons:

  1. Population growth, raising spending needs for food security, health, education, and civic amenities for a larger population.
  2. Urbanisation, increasing demand for urban infrastructure — water supply, sanitation, transport, and housing.
  3. Defence and internal security needs, rising with modernised weaponry and the scale of security threats.
  4. Welfare-state functions, as government has taken on a growing role in social security, poverty alleviation, subsidies, and employment schemes.
  5. Inflation, which raises the money cost of the same physical goods/services the government purchases.
  6. Rising interest burden on public debt, as past borrowing must be serviced through growing interest payments.
  7. Expansion of public sector enterprises and infrastructure investment, requiring heavy capital expenditure on power, railways, and ports. …

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